[Edaily Reporter Kim Hyung-il ] HYUNDAI MOTOR SECURITIES maintained its “Buy (BUY)” rating on POONGSAN CORPORATION(103140), citing second-quarter earnings that exceeded market expectations, and raised its target price from 93,700 won to 101,000 won. The firm forecasts that earnings in the copper and defense sectors will continue to improve in the second half of the year as copper prices remain high.

On the 4th, Park Hyun-wook, an analyst at HYUNDAI MOTOR SECURITIES, reported that POONGSAN CORPORATION’s second-quarter revenue reached 1.4703 trillion won and operating profit stood at 125.2 billion won, marking a 34% increase year-over-year. Operating profit exceeded all market expectations (consensus).

Analyst Park explained, “The strong performance was driven by higher-than-expected sales volume and metal gains in the copper division,” adding, “Sales increased, particularly in energy storage systems (ESS) and other areas.” However, he assessed that the defense division posted somewhat lackluster results as some revenue was deferred to the second half of the year.

Operating profit for the third quarter is projected to reach 118.4 billion won. With the copper division’s high profitability continuing and the previously deferred defense revenue now reflected, the firm expects solid results. Accordingly, this year’s operating profit forecast has been revised upward from the previous 360.3 billion won to 462.3 billion won.

Additionally, the firm assessed that while LME copper prices have been trading within a range of around $13,000 per metric ton over the past three months, they remain at historically high levels. Considering demand from downstream industries, the firm forecast that copper prices will remain at current levels in the second half of the year.

Researcher Park stated, “The direction of copper prices will be crucial for stock prices in the second half of the year,” adding, “We have raised our target price to 101,000 won to reflect the upward revision in earnings forecasts.”